Ethereum is not going through its prime. And this has been the case for several months now, since an increase in the number of transactions on its Blockchain, added to the launch of the Binance Smart Chain, exposed the weaknesses of the cryptocurrency. However, it is no longer only the Binance Blockchain that surpasses the ETH figures, but now even PancakeSwap surpasses Ethereum in daily transactions, as commented by the application in the Tweet of the day:
Ethereum loses to PancakeSwap
The Ethereum community faces many problems. The main one is, of course, the poor scalability of its chain. And it is that, as more and more people begin to use decentralized finance applications hosted on their Blockchain. Waiting times, and especially transaction fees, are getting higher, to the point of being prohibitive for many users.
This has led to the emergence of Ethereum’s second big problem: competition. Well, to take advantage of this weakness in the operation of Ethereum, the cryptocurrency exchange, Binance, launched the Binance Smart Chain. Its own Blockchain for the creation of decentralized applications, which in just a few months has managed to become ETH’s main competition. Outperforming Ethereum in daily transaction volume.
And one of the biggest signs of the crisis Ethereum is facing came to light yesterday. When the decentralized finance app hosted on the Binance Smart Chain, PancakeSwap, showed that it alone handles more transactions per day than Ethereum. Executing 2 million operations, while Ethereum only reached 1.55 million.
«In the last 24 hours: Only the path #PancakeSwap = 2M transactions. All Ethereum yesterday = 1.55M transactions The craziest part? It seems that the thing has only just begun».
Thus, PancakeSwap has perfectly summed up Ethereum’s great challenge for the coming years. Well, now that only one of the applications of its main rival can exceed its entire Blockchain in number of transactions. The need to overcome the scalability problem as quickly as possible is more than clear. Running the risk of being definitively surpassed if not.